While FD gave 6-7% p.a. return in FY23, equities stayed flat, this asset class gave a return of 13%!
Did you invest in it?
2023 has been an adventurous year, with US recession fears, Russia Ukraine war, and inflation worries. Amidst all that, equities worldwide stayed almost flat, and FD gave a return of 6-7%. Look below to see the star performer of 2023!
Gold outshone other asset classes giving a return of 13% in FY 22-23.
Should I invest my money in gold this year?
We urge to invest in the recent outperformers. But usually, the best performers for 1 or 2 years are underperformers the following year. Asset returns are cyclical. Just like gold was an underperformer in preceding years.
2. Which asset class is going to perform the best in FY 23-24?
It is very difficult for even the best fund managers to predict with accuracy, what's going to shine and what's not.
3. What should I do then?
As we always preach, map your investments to your financial goal and the time to achieve it.
< 1 year - Bank FD/ Savings Account/ Liquid/ ultra short-term debt fund
1-3 Years - Debt Funds
3-5 years - Hybrid Mutual Funds
> 5 years - Equity Mutual Funds/ Gold/ Real Estate
It doesn't end here. The below 2 are key to taking the right investment decisions -
Risk Profile - In investments, along with returns, your risk profile remains one important consideration. Knowing your risk profile helps you understand how much risk you can take vs how much risk you should consider.
Managing emotional behavior - Investing often leads to greed/ fear taking over our rationality and hence, committing investment mistakes which can cost high. A financial advisor can help you manage these emotions and take rational decisions.
If we can help you invest, reach us on -
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